Sandfire Resources America Announces US $ 12 Million Bridge Loan Agreement
WHITE SULFUR SPRINGS, Mont., Sep 08, 2021 (GLOBE NEWSWIRE) – Sandfire America Resources Inc. (“Sandfire America” or the “Company”) announces that it has entered into a bridging loan agreement (the “Agreement“) with Sandfire BC Holdings (Australia) Pty Ltd. (“BC sand fire“), the largest shareholder of the Company, and Tintina Montana Inc., a wholly owned subsidiary of the Company (“Tintina Montana“).
Under the agreement, among other things, Sandfire BC will loan a total of up to US $ 12.0 million to Tintina Montana (the “To lend“) by means of one or more advances. The Loan will bear interest at the rate of five percent (5%) per annum, payable in monthly installments, and the Loan will mature no later than June 30, 2022, subject to the conditions of the Agreement.
In connection with the Loan, the Company will act as guarantor of Sandfire BC. Tintina Montana will issue a promissory note to Sandfire BC in respect of each advance under the Loan on the applicable advance date.
The Company intends to use the proceeds of the loan to complete the proposed work program on the Company’s Black Butte copper project and for working capital purposes. The Company intends to service and repay the loan by entering into debt or equity financing.
No securities of the Company may be issued under the Agreement. The Agreement and any subsequent financing are subject to the approval of the TSX Venture Exchange.
Sandfire Resources America Inc.
Nancy Schlepp, Vice President of Communications
E-mail: [email protected]
Caution Regarding Forward-Looking Statements: Certain information contained in this document constitutes “forward-looking information” within the meaning of Canadian securities laws, including statements regarding the Agreement, the Company’s financing options and expected results. In making these forward-looking statements, the Company has applied certain factors and assumptions that it considers reasonable, including that the Company will receive the required regulatory approvals and that the Company will be able to obtain additional funds to execute its plans. However, the forward-looking statements contained in this document are subject to many risks, uncertainties and other factors, including delays in obtaining or inability to obtain approvals or funding required by the government or other bodies. regulatory. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend and expressly disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. required.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.